Toronto-Dominion Bank · TSX:TD
Toronto-Dominion Bank — TD Bank Financial Group — NBF Canadian Financial Services Conference 2005
16 slides from Toronto-Dominion Bank's conference presentation, Mar 30, 2005
Slide 1: NBF Canadian Financial Services Conference
NBF Canadian Financial Ed Clark Services Conference President and CEO March 30, 2005 TD Bank Financial Group Forward-Looking Statements And Other Information From time to time, the Bank makes written and oral forward-looking statements, including in this presentation, in filings with Canadian regula
Slide 2: Strategy Addresses Barriers to a Premium P/E
Agenda Building the better bank Four solid, growing businesses What differentiates TD 3 Strategy Addresses Barriers to a Premium P/E § Operate with reduced risk profile – less exposure to credit cycle – pro-active risk management and smaller corporate loan book – superior earnings mix provides highe
Slide 3: Double Digit Growth In All Segments in FY 2004
Double Digit Growth In All Segments in FY 2004 Business Segment Net Income* ($MM) $2,390 $2,014 25% Wholesale Banking +11% 15% Wealth Management +45% 60% Personal & Commercial +17% FY 2003 FY 2004 * Earnings before amortization of intangibles, excluding 2003 write-downs and restructurings. 5 Strong
Slide 4: TD's Earnings Growth Leads the Peer Group
TD’s Earnings Growth Leads the Peer Group Net Income Growth 139 128 12% pts Other 4 Big Banks 100 2003 2004 Q1/05 Annualized * TD earnings before the amortization of intangibles and excluding sectoral releases, write-offs and restructuring. Other banks adjusted for non-underlying items. 7 Delivering
Slide 5: Strong Capital Position Provides Flexibility and Options
Strong Capital Position Provides Flexibility and Options Tangible Common Equity to Risk-Weighted Assets 9.0% 6.9% 6.5% 5.1% FY 2002 FY 2003 FY 2004 At BNK Close March 1, 2005 Generate about $1.5B in capital annually for reinvestment Tangible common equity is total common equity less net intangibles
Slide 6: Personal & Commercial: Our Strategy is Working
Personal & Commercial: Our Strategy is Working Personal & Commercial Personal & Commercial Personal & Commercial Net Income Economic Profit (Before amortization of intangibles) $1,450 $810 $1,242 $1,085 $639 $438 $424 $258 FY 2002 FY 2003 FY 2004 Q1/05 FY 2002 FY 2003 FY 2004 Q1/05 11 Strategy to Gr
Slide 7: Focus on Operating Excellence and Maintaining Revenue/Expense Gap
Focus on Operating Excellence and Maintaining Revenue/Expense Gap Personal & Commercial Net Interest Margins Efficiency Ratio 3.38% 61.0% 3.25% 59.2% 58.7% * 58.0% 3.05% 55.6% 3.02% FY 2002 FY 2003 FY 2004 Q1 /05 FY 2002 FY 2003 FY 2004 Q1/05 *In FY 2004, efficiency ratio was 58.0%, excluding acquis
Slide 8: Excellent Profit Performance Continues in 2005
Excellent Profit Performance Continues in 2005 Personal & Commercial % Net Income Growth % Net Income Growth 2002 to 2004 Q1/04 to Q1/05 34% 21% 15% 11% TD Peers* TD Peers** Peers Faster revenues + operating excellence = top performance Net income before amortization of intangibles * Peers is an ave
Slide 9: Top Performing TD Mutual Funds – A Significant Contributor
Top Performing TD Mutual Funds – A Significant Contributor Wealth Management More Top Rated High Sales Growth in Canadian Mutual Funds Long-Term Mutual Funds ($B) (as of February 2005) (as of February 2005) 50.0% $2.3 39.6% $1.7 35.0% 32.5% 32.5% $1.4 $1.1 $0.9 #2 10.4% 4 & 5 Stars 3 Stars 1 & 2 Sta
Slide 10: Wholesale Banking: Contributing to Shareholder Value
Wholesale Banking: Contributing to Shareholder Value Wholesale Banking Net Income ($MM) Return on (before amortization of intangibles) Invested Capital 24.7% $588 22.9% $529 19.5% $290 7.5% $141 (1) (2) FY 2002 FY 2003 FY 2004 Q1/05 FY 2002 FY 2003 FY 2004 Q1/05 (1) Excluding $972 million after-tax
Slide 11: Matching Power in Fixed Income with Equities
Matching Power in Fixed Income with Equities Wholesale Banking Value of Block Trades Equity New Issues % Share and Rank(1) Market Share(2) 12.3% 11.2% 6.9% 7.2% 9.9% 6.3% #2 #4 #5 FY 2002 FY 2003 FY 2004 FY 2002 FY 2003 FY 2004 (1) Calendar year, source: TSX (2) Full Credit to Lead, includes league
Slide 12: Differentiating TD From The Peer Group
Differentiating TD From The Peer Group Wholesale Banking Net Exposure ($B) Q1 2005 PCLs ($B) Q1 2005 TD vs. Peers* $4.7 Non-investment Grade $13 $16.8 Investment Grade TD TD Peers Credit Protection at Q1/05 was $4.1B ($10) * TD PCL is the cost of credit protection incurred in hedging the lending por
Slide 13: Strategy Will Leverage TD Banknorth's Strengths
Strategy Will Leverage TD Banknorth’s Strengths TD Banknorth § Best in class management TD Banknorth in § Excellent geographic footprint in a very Northeastern U.S. affluent area in the U.S. § Platform scale franchise with very strong market positions § Successful community banking model § Acquisiti
Slide 14: TD BNK – Reconciliation Table – Non-GAAP Financial Information
TD BNK – Reconciliation Table – Non-GAAP Financial Information (In thousands, except per share data) 2000 2001 2002 2003 2004 Net income before extraordinary item and cumulative effect of accounting change $191,734 $242,982 $298,638 $350,759 $304,643 Add back merger and consolidation costs, net of t
Slide 15: What Differentiates TD
Agenda Building the better bank Four solid, growing businesses What differentiates TD 29 What Differentiates TD Lower risk profile – reduced volatility through business mix – actively managing risk with lower exposure to credit cycle Faster organic growth – unique growth opportunity in under-penetra
Slide 16: Ed Clark
NBF Canadian Financial Ed Clark Services Conference President and CEO March 30, 2005 TD Bank Financial Group 16
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